There is lot of work ahead to complete the Single Market – but it is worth it

Europe needs strong, internationally competitive industrial policies to create jobs, prosperity and growth. An integrated EU industrial policy must set the right parameters for this. The German industrial sector generates more than one quarter of the European Union’s total gross industrial value added. This means that it is very much in Germany’s interest to have policies that set the right parameters at European level for an internationally competitive industrial sector.

European Investment Plan: Opportunities for German Companies

The European Fund for Strategic Investments (EFSI) which was decided in June 2015 is the key element of EU Commission President Juncker's investment plan. It has resulted in investments of over 26 million Euro for major, medium and small enterprises in Germany. The EFSI has now been extended until 2020.

Poor productivity growth places future prosperity under pressure

The increase in labour productivity (gross value added per hour worked) has been less than one percent since the turn of the millennium. Demographic developments and the decline in the labour force are exacerbating this trend. Falling real incomes threaten in the medium to long term. BDI proposes a wide-ranging agenda for strengthening productivity in Germany and Europe in a new Industrial Policy Dossier. A potential for increasing productivity exists in particular in innovation policy and structural reforms on goods, services and labour markets.

Little progress in Brexit negotiations

As expected, EU-27 Heads of State and Government were unable to establish sufficient progress in the Brexit negotiations at the end of October. The earliest possible opportunity to launch a new phase for discussing the future relationship will be the next EU summit in December 2017. Following her Florence speech in September, Prime Minister Theresa May had hoped for more positive conclusions from the summit participants until the very last.

Final spurt ahead of 2019 European election: Juncker Commission’s last work programme

In about 18 months voters in the European Union will be invited to elect a new European Parliament. Before then, the European Commission jointly with Parliament and Council wants to provide responses to major challenges such as growth and jobs. Its new work programme outlines the measures with which the Commission wants to convince citizens of the added value of European integration over the coming year.

Single Market Information Tool – right approach, wrong instrument

In May 2017, the European Commission presented a proposal for a regulation for a “Single Market Information Tool” as a component of the so-called “Compliance Package”. The latter comprises a number of initiatives intended to help the European Single Market function better. The new instrument would empower the European Commission to collect data and request information directly from companies and business associations in the event of a “serious difficulty”.

European Commission: priority for future-oriented investments

The European Commission points to central fields for action with its country-specific recommendations for Germany: structural reforms and a more investment-friendly tax system are urgently needed. More public and private investments would simultaneously reduce Germany’s high current account surplus. Education, research and development as well as a modern infrastructure will secure Germany’s prosperity.

Brexit negotiations: strengthen cohesion among the remaining EU Member States

The United Kingdom officially applied to withdraw from the EU at the end of March 2017. This decision is likely to be reinforced with the fresh elections to be held on 8 June 2017. There will be negotiations over the next two years as to how the interdependencies between the EU and the United Kingdom can be recalibrated. German business expects that the negotiations will lead to a fair outcome for both sides.

Why BDI Supports Dual-Use Reform But Not the New Catch-All Rules

In September 2016, the European Commission adopted a reform proposal for its export control regime that sets out extensive amendments to the EU dual-use regulation. The proposed changes could have a negative impact on Europe as a technology location. The European Parliament and Council must now ensure a sound judgment in the legislative process. In a recently published position paper, BDI made recommendations on how to improve the reform proposal.

Shareholders’ rights directive on the home straight

The legislative procedure for the shareholders’ rights directive is moving towards its close. A trilogue compromise was reached in December 2016 and this was then confirmed by the Committee of Permanent Representatives for the EU Member States and by the European Parliament’s Legal Affairs Committee. The plenary is expected to vote in March 2017. The directive is intended above all to encourage shareholders to make a long-term commitment and to enhance corporate governance and transparency in companies and in exchange with all stakeholders.

European Commission’s Work Programme 2017: “Delivering a Europe that protects, empowers and defends”

Youth unemployment, refugee crisis, terrorism, UK referendum on EU exit: With its new work programme the European Commission wants answers to the major challenges and to deliver protection against threats. Whether the EU emerges from 2017 strengthened depends not least on the concrete form given to the announced initiatives as well as the creative strength of Council and European Parliament.

The European Commission plans to extend the transparency register for interest representatives and to make it compulsory. European Commission, Council and European Parliament should commit to linking dialogue with interest representatives to their prior registration. However, instead of more transparency, the Commission’s proposal would only lead to more red tape.

BusinessEurope: Standing up for industry in Europe

BusinessEurope, Europe’s umbrella business organisation, stands united for a strong and competitive Europe also in politically stormy times. Whether in the area of international trade, a competitive energy and climate policy, the digitisation of industry or a deepening of the Eurozone, BusinessEurope enriches work in Brussels – writes Joscha Ritz, Senior Manager with BDI/BDA The German Business Representation.

Moderate growth in Europe

GDP in the European Union is growing at around 1.7 percent this year. For 2017, BDI expects the figure to be below 1.5 percent. The reason for this flattening is the absence of impulses in economic policy. Important structural reforms to modernise the European economy are overdue. BDI calls for a comprehensive package of measures to increase productivity.

EU Commission demands large repayment from Apple

According to the European Commission, Ireland has granted Apple tax advantages which, in the Commission’s view, constitute state aid being incompatible with Article 107(1) of the Treaty on the Functioning of the European Union. Ireland must demand a refund of this state aid plus interest. The maximum amount to be paid by Apple is 19 billion Euro, comprising 13 billion Euro in state aid and an estimate of up to 6 billion in interest. Ireland wants to challenge the Commission’s decision before the European Court of Justice.

European Commission publishes new Telecoms Rules

In September 2016, EU Commissioner for Digital Economy Günther Oettinger and Commission Vice President Andrus Ansip presented a package on modernisation of the telecoms legislative framework. The proposals are intended to chart Europe’s course into the Gigabit society. The last overhaul of the regulatory framework for telecoms service providers took place in 2009.

EU Heads of State and Government agree on a political roadmap

After the shock of the UK referendum, the EU has rapidly regained unity and agreed a positive political agenda. In September 2016, Heads of State and Government of the EU27 reached agreement in Bratislava on a political roadmap for the coming months. The political objective has been clearly defined: it is important to restore shared political control and confidence.

Europe defies global turbulence

The economy of the European Union is likely to grow by 1.9 percent in 2016; the economy of the Euro area by 1.7 percent. The biggest driver of growth is still private consumption, which is being boosted by cheap oil and low interest rates. The weaker euro is supporting exports, but exports are still only likely to make a small contribution to growth. Investments are gradually increasing, yet remain far from pre-crisis levels.

Netherlands takes over EU Council Presidency

The Netherlands took over the EU Council Presidency on 1 January 2016. The Presidency is taking place in a difficult politicalcontext. BDI and BDA hold discussions with representatives of the Dutch government in The Hague.

Investment Plan for Europe

A key element of Juncker’s Investment Plan for Europe was passed in June 2015: the European Fund for Strategic Investments (EFSI), which will mobilise 315 billion euros for the real economy. The EFSI will finance long-term infrastructure and projects for small- and medium-sized enterprises, among other things. The instruments offer opportunities for German companies in need of capital. A European investment portal and a hub for investment advice will be set up to support them.

News

Soapbox speeches from London increase economic uncertainty

02/16/2018
- BDI (Federation of German Industries) Director General Joachim Lang comments about Prime Minister Theresa May's visit to Berlin. Instead of specifying concrete proposals with regard to future relations with the continent, London is delaying making its position clear.
more

More clarity at last – the UK should rapidly agree to EU27 proposal

“We urgently need a new government”

01/11/2018
- The BDI expects a GDP increase of 2.25 percent in 2018. 2018 must be a year of action, BDI President Dieter Kempf said. A future federal government will have to spend money in areas where there are increasing opportunities for growth, where jobs can be secured and new ones created.
more

Brexit: UK government needs to reach agreement before an agreement with Brussels is possible

12/05/2017
- BDI Director General Joachim Lang laments the lack of a breakthrough after the latest meeting between UK Prime Minister Theresa May and European Commission President Jean-Claude Juncker. Lang calls on the British government to reach agreement internally.
more

Ample progress must be achieved ahead of the next summit in December

11/13/2017
- After a meeting between British Prime Minister Theresa May and economic representatives midday today, Director General of the Federation of German Industries (BDI) Joachim Lang said that some necessary steps must still be made.
more

BDI on European Council decision: “Regrettable but justified”

10/20/2017
- In its most recent meeting, the European Council decided not to move into the second phase of the Brexit negotiations. The situation will be reviewed again in December 2017. BDI Director General Joachim Lang expressed his understanding but also underlined the need for clear progress before the next...
more

Prepare for very hard Brexit

10/05/2017
- BDI Director General Joachim Lang warns: “German firms must prepare for the worst-case scenario of a very hard exit, anything else would be naïve.” The BDI set up a task force to identify potential and acute risks associated with the UK’s exit from the EU and to develop constructive solution...
more